Post on 15-Jul-2018
transcript
march 14th , 2013
Fabrice Giraudin, SAP Global EPM COE
SAP Enterprise Performance Management
Financial Close to Disclose
© 2013 SAP AG. All rights reserved. 3
Intro
The following information is based on a compilation of key assets:
Office of the CFO customers: feedback and experience sharing about their business
challenges and pains, processes optimization, organization and management changes,
risk management, lessons learnt and successful live application content to cope with key
business requirements
Big 4 Advisory and Audit consulting firms: feedback, experience and benchmarks dealing
with such business targets and key objectives, including project implementation debrief to
confirm goals achievement
SAP knowledge and expertise within the Enterprise Performance Management space and
specially in the legal consolidation and management reporting for the last 20 years
supporting key customers to get rid of their challenges and get instrumental benefits
© 2013 SAP AG. All rights reserved. 4
Integrate and Consolidate ERP Platforms
Simplify user access
Standardize and Automate
Harmonize Legal and Management Accounting
Establish 'Self-Auditing' Processes
Define Closing Process centrally
Provide Workflow and Coordination
Ensure Reliable Reporting and Decision Support
Monitor Closing Status centrally
Fast Financial Close Breaking the Barriers
Fast
Fin
an
cia
l C
lose
So
luti
on
Map
IT Systems
Organization
Processes
Insight & Control
CFO Strategies Barriers
© SAP 2009 / ERP Financials & BusinessObjects Enterprise Performance Management – AXA Group Overview Presentation V.1 / Ralph Schöpfer / Page 4
© 2013 SAP AG. All rights reserved. 5
Best of Common Issues with the Financial Close Manual Errors, Slow Time to Report, Control Risks
2012 SAP survey based on customers experience and Big 4 feedback
Local close cycle
Manual journal entries and
reconciliation of data from disparate
systems increases time
Email and spreadsheet status reports
and communications require version
control and contribute to errors
Intercompany
reconciliation
Manual reconciliation and
elimination
Time consuming and error
prone processes
Group close
Manual eliminations
High costs to close books
Large volumes of late adjustments
Inability to ensure on-time close
External financial
reporting
New reporting formats
(e.g. XBRL)
Long audit sign-off periods
Increased auditing costs
Financial management
review
Difficult to certify correctness of data
from multiple origins
Data may contain undetected errors
Time consuming manual processes
make it difficult to respond to ad-hoc
requests for analysis
1
Controlling
Internal Audit
Consolidations
2
6
5 4 3 Data submission for group close
Manual processes and spreadsheets use to
transfer data from local to group chart of
accounts
Lack of automated audit trails
Labor-intensive and time consuming data
validation and error reconciliation
© 2013 SAP AG. All rights reserved. 6
MUST HAVE a Modern, Coordinated Financial Close Automated, Scheduled, Compliant and Leverages XBRL Standards
2012 SAP survey based on customers experience and Big 4 feedback
Local close
■ Real time synchronization of all tasks
■ Cross-system scheduling
■ Automated and repeatable event based
processes
■ Monitoring and control
Group close
■ Automated eliminations, consolidations,
journal entries, and audit trails
■ Coordinated worldwide closing schedule
■ Complete visibility over processes and
owners
External reporting
■ Improved transparency
increases investor confidence
■ Automated and documented
audit trails
Executive
financial review
■ Visual tools help
deliver key insights
and validate data,
calculations, and
divisional results
■ Full cycle compliance
monitoring and
internal control
Intercompany
reconciliation
■ Automated reconciliation
■ Standard COA eases
matching
■ Alerts identify
exceptions
■ Workflow based
remediation
Data submission
for group close
■ Unified “lead” ledger and
standardize chart of
accounts
■ Integrated systems,
automated mapping from
local to group accounts
■ All units submit data to
same system in common
format
Controlling
Consolidations
Internal Audit
© 2013 SAP AG. All rights reserved. 7
Benefits Derived from Cycle Time Reduction
Key Benefits of accelerated financial close
Improved control systems and processes at lower cost
Greater quality and greater efficiency
Faster access to financial information for decision making
More time for value-add financial analysis
Ability to respond to management requests and support key initiatives
Marketing tool
Work-life balance for accounting
Source: SAP - Fast Close Survey. BPM Magazine. May 2012
Redeployment of staff and resources towards more value-added activities
Ability to meet regulators deadlines
I do not see any value in cycle time reduction
Be able to work fewer hours, less late nights and weekends
Cost reduction
62%
7%
8%
13%
10%
© 2013 SAP AG. All rights reserved. 8
Customers’ Speed Closing and Reporting Cycle Times
While Reducing Costs with SAP Accelerate the Financial
Close porfolio Working Days to Close Annual
Books 10.1
4.1
Best in Class
Average
Source: ASUG Benchmarks 2011
Customer Benefits Achieved
Reduced reporting resource required by 33%
Reports created 30% faster
Reduced financial statement prep time by 20%
Shortened period-end closes by 2 days
Significantly reduced close cycle time
Used SAP GL as single-instance data source
Reduced reporting cycle time from 20 to 5 days
Roche HQ consolidation cut from 12 to 2 days
Reduced intercompany reconciliation process from
10 days to 5 days
Reporting cycle cut by 5 days enabling monthly
closings
Cut month-end closing time by 2 to 3 days
Dropped daily business reporting time from 10
person-hours to seconds
At Roche we cut our monthly
reporting cycle from 20 to 5
work days, and now our top
management has the ability
to make faster business
decisions, which they really
appreciate. Suzanne Erken-Recks, Head of
Corporate Finance Informatics,
F. Hoffmann-La Roche Ltd
“
© 2013 SAP AG. All rights reserved. 9
Fast Financial Close with SAP Driver of Savings and Benefits
Benefits of a fast financial close
Improved control systems and processes at lower cost
Greater quality and greater efficiency
Faster access to financial information for decision making
More time for value add financial analysis
Ability to respond to management requests and support key initiatives
Work-life balance for accounting staff
Benchmarks from SAP's case studies and success stories
% Impact
Operating Costs or Benefits
Time to close books (cycle time) 30% - 45%
Financials staffing levels 20% - 45%
Reconciliation costs (e.g., data sources, legal
accounting, management accounting, inter-company) 50% - 80%
Corrective actions during quarterly financial consolidation cycle
30% - 50%
Amount of data automatically integrated with SAP® ERP
20% - 80%
Reduce Ledger interface maintenance costs 20% - 40%
Fully automated consolidation reports and distribution
35% - 100%
Internal and external audit costs (“self-auditing processes”)
10% - 20%
World-class companies spend 45% less on their closing and reporting efforts than other companies and save €5.5 million for every €1B in revenue. The Hackett Group
“
© 2013 SAP AG. All rights reserved. 10
Fast Financial Close with SAP Driver of Savings and Benefits
Benchmarks from SAP's case studies and success stories
% Impact
Operating Costs or Benefits
Downsize Infrastructure Costs (at comparable users scope) 25% - 35%
Reduce Costs and simplify Consolidation App Maintenance Costs (only 1 FTE for application system evolution, internal administration, no need of consulting after go live)
50% - 80%
Office of the CFO is the app owner – no need of technical experts from IT to design reports (IT only required for servers platform)
100%
Simulation and what if scenarios flexibility (no more Excel parallel spreadsheets) 20% - 40%
Customer / end user satisfaction and buy in (solution supported by the business, common language and reporting tool across the group)
10% - 20%
Bekaert can collect its far-flung data more efficiently with greater transparency, accuracy,
and speed. Greater efficiency has enabled Bekaert to reduce time spent during its quarterly
Financial consolidation by 30%. Because it takes less time to prepare the numbers, there is
more time for our financial controllers to perform broader and more value-added analysis.
Jos Van Vooren, Consolidation Director, Group Control, Bekaert
“
© 2013 SAP AG. All rights reserved. 11
Entity Close
Corporate Close
Financial Accounting
Reporting and Disclosure
Financial
Close
Governance
Internal Controls
Master Data Governance for Financials
General Ledger
Sub-Ledgers
Intercompany
Reconciliation
Reporting
and Analysis
Consolidation
Notes
Management
Disclosure
Management
Accounting and financial close Improve speed, accuracy, and compliance while reducing costs
Entity Close
Management
© 2013 SAP AG. All rights reserved. 12
Accounting and financial close Improve speed, accuracy, and compliance while reducing costs
Streamline
reporting and
adhere to
regulations
Efficiency
Insight
Transparency
Control
Reporting and
Disclosure
Ensure
transparency
and consistent
master data
Standardization
Consistency
Transparency
Control
Financial Close
Governance
Quickly supply
consolidated
multi-standard
financial data
Compliance
Speed
Automation
Efficiency
Corporate
Close
Provide timely
reporting with
existing
resources
Compliance
Speed
IC matching
Efficiency
Entity Close
Support
multiple
standards and
requirements
efficiently
Compliance
Automation
Integration
Efficiency
Financial
Accounting
Chief Financial
Officer
© 2013 SAP AG. All rights reserved. 13
Accounting and financial close applications
Reporting and
Disclosure
Financial Close
Governance
Corporate
Close Entity Close
Financial
Accounting
Chief Financial
Officer
SAP General
Ledger
SAP ERP
Financials –
Sub Ledgers
SAP Financial
Closing cockpit
SAP Central
Process
Scheduling by
Redwood
SAP
Intercompany
SAP Financial
Information
Management
SAP Business
Planning and
Consolidation
SAP Financial
Consolidation
SAP Notes
Management
SAP Starter Kits
SAP
BusinessObjects
BI Solutions
SAP Disclosure
Management
EPM Addin
SAP Process
Control
SAP Master Data
Governance for
Financial Data
© 2013 SAP AG. All rights reserved. 14
SAP Rapid Deployment Solutions
Software
Quickly address the most urgent business
processes
Content
SAP best practices, templates and tools
make solution adoption easier
Enablement
Guides and educational material speed end
user adoption
Service
Fixed scope and price provides maximum
predictability and lowers risk
Ready-to-use solutions offered
by SAP and a Global Partner
Ecosystem include…
… which allow for predictability,
packaged integration and adoption
choices as business demands
Predictability
Fast value in days/weeks
Fixed cost and fixed best practice scope
Integration
Integrated start and growth options
Immediate and future IT and business
processes landscape integrity
Choice
Modular packages to meet specific
business needs and allow individual
adoption paths
Flexible licensing and deployment options
© 2013 SAP AG. All rights reserved. 15
SAP rapid-deployment solution for financial close and
disclosure management
Full support for GAAP to IFRS transition
The Financial Close starter kit for IFRS includes
features to help customers transition to IFRS.
Pre-configured IFRS consolidation rules,
controls, and calculations
Consolidation processing, extensive set of
automatic business rules, analysis & audit trail
and control &validation are some features which
supports pre-configuration.
Publishable financial statements
The pre-configuration is delivered with a set of
key financial statements based on IAS 1 for
Financial Close.
Pre-configured financial reports mapped with
IFRS taxonomy for use with SAP Disclosure
Management, allowing you to pull data from the
consolidation application into ready-made XBRL
documents for reviewing, analyzing and
preparing financial data.
© 2013 SAP AG. All rights reserved. 16
Fast implementation Pre-packaged content reduces implementation times
Financial close starter kits and RDS available today
SAP Business Planning and
Consolidation, SAP
NetWeaver – powered by SAP
HANA
IFRS SP4
Available
Now
US GAAP
SP0
May 2013
US GAAP
SP1
Nov 2013
SAP Business Planning and
Consolidation, Microsoft
platform
IFRS SP1
Available
Now - -
SAP Financial Consolidation
IFRS SP3
Available
Now
Solvency II
Available
Now
Japan
GAAP
GA March
30, 2013
EBA FinRep/
CoRep
June 2013
SAP Disclosure Management
IFRS SP1
Available
Now
US GAAP
SP2
Available
Now
-
EBA FinRep/
CoRep
June 2013
This presentation and SAP„s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
© 2013 SAP AG. All rights reserved. 17
EPM 2013 Back to Growth (IFRS regions focus)
SAP® Financial Close and Disclosure
Management rapid deployment solution
For IFRS
© 2013 SAP AG. All rights reserved. 18
EPM 2013 Back to Growth (IFRS regions focus)
Business
Suite / ERP ERP / BW /
HANA or FIM
Connector
BPC NW
or
FC
IFRS GAAP
Starter Kit
FC
Starter Kit
Installer
Disclosure
Management
IFRS GAAP
Starter Kit
Disclosure
Management
Starter Kit
Installer
Mobile BI
Instant Close
IFRS GAAP
KPIs
NOW Run Better + Faster
IFRS GAAP rapid deployment solution for go-live in 12 weeks
This presentation and SAP„s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
© 2013 SAP AG. All rights reserved. 19
EPM 2013 Back to Growth (IFRS regions focus)
Business
Suite / ERP ERP / BW /
HANA or FIM
Connector
BPC NW
or
FC
IFRS GAAP
Starter Kit
BPC NW
or
FC
Starter Kit
Installer
Disclosure
Management
IFRS GAAP
Starter Kit
Disclosure
Management
Starter Kit
Installer
Mobile BI
Instant Close
IFRS GAAP
KPIs
Q2
2013 Run Better + Faster + Savvier
IFRS GAAP rapid deployment solution for go-live in 12 weeks
This presentation and SAP„s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
© 2013 SAP AG. All rights reserved. 20
• Current reporting context
• 4 main KPI‟s
• Year / Year -1 in a table +
comparison September
ACTUAL vs September
Forecast
• 3 charts to display the YTD
Actual+Forecast+Budget
• Last refresh of the data
Accelerate Financial Close to Disclose – 2013 Offer
IPAD Instant Close
© 2013 SAP AG. All rights reserved. 21
EPM deal – former Hyperion customer
About KazMunaiGas
€ 4 billion revenues
O&G producer and supplier conglomerate
28 countries, 70,000 people, 50 production sites
KMG top management seeking to achieve
synergies and accelerate the development of its
activities by revisiting the Group organization:
• reporting business processes impact
• new flexible reporting consolidation tool to
address the Group finance requirements in
line with the organization
• Cover regional and divisional requirements
Customer situation and pains
Lack of integration of the current solution with SAP
ERP and SAP BW corporate reporting tool
Improve ad hoc analysis on the consolidated
management data, multiple scopes
Improve Audit trail from the consolidation system
back to SAP ERP
Improve the intercompany reconciliation process
Lack of traceability and versioning on the multiple
data submissions by the end-users
SAP@KMG : 10.000 SAP ERP & BW existing users
SAP EPM Solutions –Q4 2012
SAP BPC for Planning
SAP Financial Consolidation
SAP Financial Information Management
SAP Intercompany
SAP Disclosure Management
Why SAP ?
1. Solutions : SAP met KMG‟s business & infrastructure
high expectations
2. CFO workshop
3. Pre-Sales job with spot demos on key topics (M&A,
cash flow statement, IFRS pack,…)
4. Marketing & references
5. Field Services and Alliances
6. Exec Sponsorship
KazMunaiGas
© 2013 SAP AG. All rights reserved. 22
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